The nuts and bolts
Many businesses fail because they have no control of their sales process.
A good sales process:
- Ensures your team is ‘engineered for success’
- This should be present from the moment you employ them to every deal they close
- It’s critical to place the prospect and customer at the centre of the process.
A sales process is the ‘sales way’ of the organisation. Every sales way is unique to the particular company, whether it’s a start-up or a large corporate. The sales process is a blueprint for how the company can best serve its customers, relative to its product or service offering. Ultimately, the key reason for developing a sales process is to ensure you drive maximum revenue.
In my experience many companies, small and large, do not have a well-defined sales process in place. My advice is to begin developing a sales process as a key priority within your company. Keep it simple, do a few things exceptionally well rather than many things in an ordinary way. If executed well, the results will follow far better than you can imagine.
A well thought out sales process enables:
- Improvement in forecasting accuracy
- Repeatability of successes
- Sales managers converting from administrators to effective coaches
- Sales teams shifting from sellers to value creators
- Higher customer satisfaction due to improved professionalism
- More frequent and higher conversion rates
- Every activity of the sales force can be efficiently carried out by new employees
- Management can adapt and improve the way the sales team engages with customers and ensure that the customers are getting the best benefit
- Driving customer satisfaction is the key element on which all improvement is based.
Create a sales process methodology
Always start with the customer. Define all the elements required within your sales organisation relative to a customer’s needs. What customer needs can your company potentially deliver a solution for? Work backwards from that point of departure and you will be able to create all the required sales processes accordingly.
The best way to tackle the creation of a sales process methodology is to define the headings relative to your customers’ needs and then plot them backwards from the very end, such as after sales service and right back to how you recruit a new sales person. There is no blueprint or ‘how to’ template here as each company will (should) have its own customer centric sales way.
Creating a value-driven sales process
There are definitive elements which must always be included in a sales process and the starting point is to ensure your company creates and develops a value-driven, diagnostic-based system for selling.
Your sales engagement process needs to include how you discover, diagnose, design and deliver solutions for your prospects and ultimately customers. Essentially, it’s looking at all the key elements within the sales organisation and then creating a process for them that can be repeated again and again with improvement when necessary. That’s why the sales process methodology you develop remains a living document that must be tweaked and enhanced as required.
Beware of the Internet in your sales process
It’s important to note that the digital revolution has impacted the sales process dramatically. Research from Google and advisory company CEB, titled The Digital Evolution in B2B Marketing, provides new insight into buyer behaviour.
According to the study, customers reported being nearly 60% through the sales process before engaging a sales rep, regardless of price point. Up to 57% of the sales process just disappears. What are buyers doing if they’re not talking to sales?
They’re surfing corporate websites to identify and qualify vendors instead of waiting for the sales team to qualify them. They are using social media to learn more about their needs, potential solutions and providers, and they’re reading, listening to, and watching free digital content that is available to them at the click of a mouse. No longer is the sales force the sole source of information.
It’s becoming increasingly important for sales to transition from being a ‘product pusher’ to an ’insight provider‘ adding value to the buyers’ business.
What does this mean for the sales organisation? No matter whether your sales team numbers one, three or 300, if those people are simply walking, talking product brochures, trying to tell a prospect why your product is better than another, they are going to lose.
Customers, or prospects in this case, know what your product does and what your competitors’ products do, and they may even know that better than the sales person does. So then what is the role of the sales person?
A look at sales metrics
Sales metrics are used to understand the effectiveness of marketing and sales activities and the efficiency of the sales process. They are all the things that a sales organisation needs to do to greatly increase the likelihood of achieving target.
The starting point
- Start with territory alignment, territory management and sales force sizing
- What is the size of your total available market?
- How many people do you need to maximise reach into this market?
- What is the achievable revenue?
- What is the average deal size?
- How many appointments do you need so that you can submit proposals and increase the possibility of closing those deals?
An appointment can be a follow-up to check that what you have sold to someone has been delivered. It could be an appointment that forms part of the way you engage to find a solution and close the deal.
- How many calls do you need to make every week to secure those appointments?
- How many deals do you need to close to achieve target?
- How big should your pipeline of prospects be? This is the number of companies you’re engaging with who may potentially buy your product.
- The sales metrics must be predetermined and inspected and reviewed regularly, daily or at the very least, weekly.
Sales metrics are always related to the target
- If the sales person has a target of R100 000 per month and the average size deal is R20 000, they will have to close five deals a month to achieve target.
- Working backwards from that, and depending on the industry, let’s say 20 appointments per month are required in order to close five deals.
- This means your sales person is closing one out of four. If you prospect and qualify correctly, your team may be able close one out of three. Having the figures to hand can help you shorten the sales cycle and raise performance to deliver a phenomenal increase in revenue.
- Metrics also display how much progress has been made towards the goal of closing the deal.
Developing sales metrics ensures a systematic process you can repeat over time and begin to perfect.
The best way to track metrics is to have a CRM system in place, but the software will mean nothing if you do not have a process in place for how that information is entered into the system.
Diaries need to be populated correctly. If you’re reading this article, take a look at the diaries of your sales force, see how much white space there is, and ask what that sales person is doing during their ‘white space’ time. You will be shocked at the low levels of activity!
Diaries should be colourful and vibrant: Blue for appointments, red for admin, green for follow-ups, whatever colours you choose. And if you see a number of appointments being made for 3.00pm, do your company a favour and give one of those prospects a call to find out how the meeting went. That may well be your second surprise!
Being a trusted advisor; mediocrity to excellence
Develop a culture within your sales organisation by transforming your sales reps from sellers to advisors. By advisor I mean a person who can accompany the prospect through a process of discovery and diagnosis of their needs, talking very little along the way and rather asking intelligent questions to ascertain what that person’s real need is and to expose them to fresh, new ideas — and ultimately to highlight the cost of not changing as well as the real benefits of changing.
It’s not about selling; it’s about ascertaining true need and finding a solution.
This consultative approach to selling starts with the people you employ and the moment they join the organisation. It’s about a culture and that starts with the owner of the business.
How are you as a leader? Is trust fundamental to the way you operate? If you as the leader of a business do not elicit trust-based character traits it’s going to be a barrier to your own selling success and that of your team. That’s because the only differentiator you have in today’s commoditised economy is not your product or your service.
You can differentiate only through adding value to that prospect’s life by being a trusted advisor. Do not sell for yourself; go out there and engage for the betterment of your customer. And it all begins with your sales process.
Developing sales discipline through inspection and metrics
If you do not have a manual with the processes, methodologies and structures in place you are unable to monitor, review and coach your sales team and discipline will be lacking or non-existent. It’s as simple as that.
To quote the late Chet Holmes, ”What you do not inspect, they do not respect.“ If you want your team to respect your policies or processes, make sure they know what you expect, all of this outlined in your process manual. You will be truly amazed at the results that will follow.
Why Creating Value For Your Customer Beats Giving Price Discounts
Customers want value for money. It’s time to rethink your pricing strategy (without losing your margins).
Win More Sales
Businesses that can prove and deliver the greatest value can ask their price.
Pricing strategy may be low on the priority list, but complaints about competitors’ low prices get a lot of attention. It’s time to rethink your pricing strategy and rules.
For most of us, pricing is a cost-plus system, the calculated cost of an item is marked up by a percentage to get the selling price, which may then be discounted to match competitive prices. This method assumes that your cost is the lowest it could be, which is rarely true. It is likely you could drive down costs by smarter purchasing or more efficient manufacturing.
The second wrong assumption is that the mark-up percentage is correct; it is more likely to be a long-ago rounded off thumb suck of what you need to run the business, and out of date in this economy. Crucially, cost plus pricing ignores the value that a customer gains when buying the product.
Research shows that customers increasingly seek value for money and will even pay a premium for value. This is especially true of young people, but all classes of buyers, from giant corporates to very poor individuals, seek value over price. Many tenders are not awarded to the lowest bidder but to the supplier best able to deliver. Very poor people buy expensive branded food because they are trusted.
Companies hesitate to switch suppliers only for price, particularly where delivery and quality are vital. With all this evidence that value is important, it’s time to rethink your pricing.
Ask your customers what factors are important when choosing suppliers. Price will always be one factor, but focus on the others. Your goal is to become the supplier that best matches all their needs. In many cases, you may even be able to increase your price. Bottled water sells for anything from R5 to R50 a bottle, simply based on the buyer’s perception of the health and other values of that brand. You can get a website and brand identity for less than R10 000 or more than R1 million — neither are the wrong price, it depends what the buyer needs. Get all the information you can and don’t rely on your own or your sales team’s perception of customer needs.
What happens if you cannot make money at the price the customers see value in the item? Start a harsh examination of your buying or manufacturing efficiencies. At the same time re-examine the margin calculation — lean businesses need less margin than lazy ones. If you still cannot make or buy it economically, consider changing your pricing strategy.
Convenience pricing is offering a bundle of goods and services for a single price or monthly fee. The customer can easily assess affordability and decide if this offers value. Cell phone suppliers and motor dealers adopt this pricing method. You buy a car for a single monthly fee including the car, warranty, maintenance plan, roadside assist, financing and other items. Both customer and seller are satisfied.
Value-based pricing sees the price determined by the value of the product or service to the individual buyer. The most skilled value-based pricing experts are the street hawkers who are quick to assess the value a student, a businesswoman or a tourist may put on an item. Public speakers have different prices for different audiences like large businesses, start-ups and NGOs — I use this method.
Incentive-based pricing is widely used in the IT and construction industries. It works on the basis that the price is variable and depends on the performance of the supplier. An IT project may have a nominal price but bonuses are paid for early completion, being below budget or developing more than the requirements. Conversely, not meeting deadlines, delivering late, poor quality or incomplete systems will reduce the price eventually paid. Consider if your business can use one of these highly effective pricing strategies.
What Is Customer Intimacy And How Do You Use It?
If you think that maintaining a close relationship with customers is not as important as selling your products, you are wrong.
Knowing your customers well is a major part of being a successful marketing company. When companies do not connect with their customers, this is when they lose loyalty, revenue and positive customer sentiments. And in today’s world of hyper-connectivity and improved brand interactions, not being connected to your consumers can damage your brand in the long run.
If you think that maintaining a close relationship with customers is not as important as selling your products, you are wrong.Customer intimacy should be a top priority for any company who wants to maintain their success.
But, what exactly is customer intimacy?
Simply put, it is a business strategy that is based on paying close attention to the needs of your customers and ensuring that these needs are met and prioritised at all points of their journey with your company. It often involves close contact with customers using a variety of different channels and techniques. You need them to know that you care about their needs and understand what they are asking for.
You could think of it as segmenting your audience and creating specific offerings to precisely match their needs. If you want to excel at using customer intimacy, you will need to combine your in-depth knowledge of your customer with the ability to be flexible in your operations. This way, you can respond to any customer needs as quickly as possible, maintaining the high standards they have come to expect from your brand.
How do I use it?
Now that you understand what customer intimacy is, you are ready to delve deeper and figure out how to use it. There are some simple tips that you can use to implement customer intimacy in your current marketing strategy. Outlined below are just some of these effective methods.
Always prioritise your customers
This is the first step to any successful customer intimacy strategy. Prioritising your customers means that you need to set up operational processes which are “customer first” in their thinking. You will need to start by listening to customers and analysing their concerns. Only once you understand these concerns, will you be able to provide solutions.
It is important to look into processes that prioritise these concerns rather than react negatively to them. An example of this is avoiding looking at how many calls your client service team takes in a day but rather looking at the goals that they achieve when answering customer queries. Have they answered the customer’s question? Is there a resolution in sight for the problem? These are a more important metric to look at than how many calls are answered in a day.
Try to resolve problems
In order to become more customer-intimate, you should strive to solve the problems that arise rather than discourage people from coming to you with issues. And your brand should make customers feel as though they can share their grievances, either by contacting you directly or by writing a review on your social media page.
Statistics show that customers share a bad experience twice as often than they do a positive one, which could be highly detrimental to your company. So, when your customers do take the time to contact your business with either a positive or negative review, you have to have steps in place to resolve these problems. Use these complaints to improve your processes and your customer service section, so that the next time someone contacts you, it will be with compliments and not complaints.
Set goals that your entire company must follow
One of the most effective ways to become a customer-centric company is to set common goals that all of your employees must follow. For example, one goal could be to answer customer questions within 24 hours with a solution that is realistic and achievable. Or you could aim to improve your project turn-around time by gathering information from clients at every stage of their journey.
Whatever goals you set for your business, you will need to ensure that every employee adheres to them. Leaders need to set an example for their staff so that the customers, ultimately, reap the benefits. But be sure that your goals are attainable. You cannot expect your employees to reach the unreachable, as this will negatively impact the level of customer service you can provide consumers. Look at the data that is coming in from customer calls and interactions and use this to come up with goals that you can reach.
The customer is always right
We often use this saying in a joking or derivative way, but it is truer than you might think, especially for marketing companies. In today’s world, the consumer wants brands to focus on them. In fact, if a brand ignores even the smallest form of contact with a customer, there could be an issue. And this is why you need to become a customer-intimate brand.
You need to prioritise the needs of the customer at every touchpoint in their journey with your brand, solve any problems that might arise and ensure that everyone is on the same page in your company. Soon you will see that your customers are singing your praises to everyone they meet.
How To Use Sales Skills To Build Your Business
If you want to build your business up, read on below for how to use sales skills to do so.
Building your business from the ground up is no easy feat. You might feel overwhelmed by all the ways and methods that are available to you but there is one way that can help your efforts immensely, and that is by using sales skills. Sales skills might not seem like they are applicable to building a business, but what is a business without sale people?
You could look into a sales accelerator for business development course to improve your selling skills. Sales training courses can be useful, as they will teach you about sales techniques and sales strategy, which you can apply to other aspects of your business. So, if you want to build your business up, read on below for how to use sales skills to do so.
Listen to existing customers
An effective way to improve your business offerings is to listen to your existing customers. Listening is actually more complex than it seems, and it means that you have to do a lot less talking. This will help you to truly hear your customers and take stock of what they are saying.
Listening to existing customers is one of the best sales and marketing strategies you can use to improve your business. This is especially true if you have built a relationship and rapport with your current customer base, as this will encourage them to give you insights into any issues they might be facing. Whether you are a small business or a large company, listening to customers is always helpful.
Try to solve a problem
Solving a problem is a marketing plan that is effective and sure to work in building your business. And a great salesperson knows that solving the problem of a potential customer is a sure-fire way to improving the conversion rate of their business.
You will need to do some research into the problems that your target market faces and then focus on how your products or services can be used to solve these problems. This ties into the first step of listening, not only to your existing clients but to potential ones too. Listen to what people are saying and learn to read what is being said. This way, you will be able to ascertain the problems your customers are facing and you can come up with solutions to fix them.
Use word of mouth
Existing customers can be a huge help to your business, in that they can provide you with positive referrals to use to boost your client base. If a customer is happy with the services or products you have provided them with, you can ask them for the name and contact details of other business owners who might benefit from your help.
You can also ask for positive testimonials from customers that you can place on your business site and social media platforms. You should always ask permission before using testimonials, and be sure that they are factual, true and relevant to your brand. Referrals and testimonials are common sales tactics that can be applied to boosting a small business or improving the reputation of an established company. And while nobody enjoys receiving negative reviews, it is important that you use these reviews to learn from your mistakes and improve your customer experiences.
Sell your vision
Building your business might involve reaching out to investors to help with monetary issues, and this is where your sales skills will really need to shine. This is because you are not only selling your business, but you are selling your vision of your business as well.
You will need to give specific details as to how your offerings will help customers to solve problems and answer questions. And you will need to sell a successful vision to your investors of how you want your business to success. Show them that your employees will be happy with how well they are taken care of and that customers will live a better life by using your services or product.
Exceed customer expectations
When a salesperson goes over and above what the customer expects, it is likely that the customer will become a return customer. And this is what you want for your business, right? So you should look into ways in which you can meet and exceed customer expectations.
One of the benefits of always exceeding expectations is that you will no longer have to rely on the “hard sell” to encourage people to use your business. Word-of-mouth will travel about your excellent customer service, which will sell your business for you. If your brand is passionate about providing customers with the best possible service, you will be selling your business and improving it all at once.